Harleysville Savings Financial Corporation (NASDAQ:HARL) reported today that the Company's Board of Directors declared a regular quarterly cash dividend of $.19 per share on the Company's common stock. The cash dividend will be payable on February 22, 2012 to stockholders of record on February 8, 2012.

Net income for the quarter ended December 31, 2011 was $1,364,000 or $.36 per diluted share compared to $1,216,000 or $.33 per diluted share for the same quarter last year.

Ron Geib, President and Chief Executive Officer of the Company, stated, "Given today's economic and interest rate environment, we are pleased with the solid financial results of the quarter and look forward to another year of creating value for our stakeholders. Despite the lack of growth in assets, we were able to increase the net interest income by reducing the funding cost of the liabilities. We continue to remain focused on increasing core deposit relationships and reducing the amount of advances as they mature. This strategy has allowed our net interest rate spread to increase every quarter this past year from 1.98% a year ago to 2.33% for the current period. Reducing our funding costs while maintaining a portfolio of quality loans and investments should allow us to deliver consistent, ongoing returns for our shareholders. Combining the prudent management of the balance sheet with a highly engaged team of employees is a great beginning to our 25th year as a public company."

The Company's assets totaled $832.6 million compared to $856.7 million a year ago and stockholders' tangible book value increased to $15.39 per share from $14.63 a year ago.

Harleysville Savings Financial Corporation is the holding company for Harleysville Savings Bank. Established in 1915, Harleysville Savings Bank is a Pennsylvania chartered and federally insured savings bank. Headquartered in Harleysville, PA. The Bank operates from six full-service offices located in Montgomery County and one office located in Bucks County, Pennsylvania.

This presentation may contain forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995). Actual results may differ materially from the results discussed in these forward-looking statements. Factors that might cause such a difference include, but are not limited to, general economic conditions, changes in interest rates, deposit flows, loan demand, real estate values and competition; changes in accounting principles, policies, or guidelines; changes in legislation or regulation; and other economic; competitive, governmental, regulatory, and technological factors affecting the Company's operations, pricing, products and services.

 
Harleysville Savings Financial Corporation
Selected Consolidated Financial Data as of December 31, 2011
(Dollars in thousands except per share data)  

(Unaudited)

  Three Months Ended:
       
Selected Consolidated Earnings Data

Dec 31,
2011

Sept 30,
2011

June 30,
2011

Mar 31,
2011

Dec 31,
2010

Total interest income $ 9,005 $ 9,358 $ 9,494 $ 9,291 $ 9,430
Total interest expense   3,967     4,559     4,736     4,764     4,975  
 
Net Interest Income 5,038 4,799 4,758 4,527 4,455
Provision for loan losses   250     660     165     175     150  
Net Interest Income after Provision for Loan Losses   4,788     4,139     4,593     4,352     4,305  
 
Bank owned life insurance 122 141 1,163 121 123
Other income 449 393 356 311 378
Total other expenses   3,298     3,239     3,385     3,340     3,161  
 
Income before income taxes 2,061 1,434 2,727 1,444 1,645
Income tax expense   697     337     739     350     429  
 
Net Income $ 1,364   $ 1,097   $ 1,988   $ 1,094   $ 1,216  
 
 
Per Common Share Data
Basic earnings $ 0.36 $ 0.29 $ 0.53 $ 0.29 $ 0.33
Diluted earnings $ 0.36 $ 0.29 $ 0.53 $ 0.29 $ 0.33
Dividends $ 0.19 $ 0.19 $ 0.19 $ 0.19 $ 0.19
Tangible book value $ 15.39 $ 15.19 $ 15.09 $ 14.74 $ 14.63
Shares outstanding 3,772,028 3,758,751 3,747,920 3,731,574 3,704,940
Average shares outstanding - basic 3,763,147 3,752,394 3,737,439 3,723,236 3,693,373
Average shares outstanding - diluted 3,790,457 3,776,650 3,771,917 3,758,260 3,731,203
 
 
 
(Dollars in thousands except per share data)                  

(Unaudited)

Three Months Ended:
Other Selected Consolidated Data

Dec 31,
2011

Sept 30,
2011

June 30,
2011

Mar 31,
2011

Dec 31,
2010

Return on average assets 0.66 % 0.52 % 0.93 % 0.51 % 0.57 %
Return on average equity 9.40 % 7.74 % 14.26 % 8.03 % 9.08 %
Net interest rate spread 2.33 % 2.16 % 2.11 % 2.01 % 1.98 %
Net yield on interest earning assets 2.49 % 2.34 % 2.28 % 2.17 % 2.14 %
Operating expenses to average assets 1.57 % 1.53 % 1.58 % 1.56 % 1.48 %
Efficiency ratio 58.80 % 60.72 % 53.93 % 67.36 % 63.78 %

Ratio of non-performing loans to total assets at end of period

0.64 % 0.40 % 0.38 % 0.42 % 0.39 %
Loan loss reserve to total loans, net 0.68 % 0.63 % 0.51 % 0.55 % 0.51 %
Stockholders' equity to assets 6.97 % 6.83 % 6.59 % 6.42 % 6.33 %
 
                   
Selected Consolidated Financial Data  

Dec 31,
2011

  

Sept 30,
2011

 

June 30,
2011

 

Mar 31,
2011

 

Dec 31,
2010

Total assets $ 832,630 $ 835,713 $ 857,579 $ 856,478 $ 856,681
Consumer Loans receivable 416,900 424,424 421,203 418,329 421,375
Commercial Loans receivable 99,593 97,373 90,916 85,646 86,051
Loan loss reserve (3,559 ) (3,311 ) (2,652 ) (2,795 ) (2,639 )
Total Loans receivable net 512,934 518,486 509,467 501,180 504,787
Cash & investment securities 119,448 122,306 150,978 161,878 176,274
Mortgage-backed securities 156,411 150,547 150,669 144,686 127,188
Total Investments 275,859 272,853 301,647 306,564 303,462
FHLB stock 12,455 13,110 13,800 14,526 15,291
Checking accounts 96,671 90,146 89,629 81,698 80,426
Savings accounts 147,156 138,805 137,474 138,228 134,671
Certificate of deposit accounts 286,544 295,450 303,999 311,346 316,550
Total Deposits 530,371 524,401 531,102 531,272 531,647
Advances 238,676 250,194 261,900 263,632 265,347
Total stockholders' equity 58,033 57,082 56,551 55,009 54,205
 

Harleysville Savings Financial Corporation
Brendan J. McGill
Executive Vice President, COO/CFO
215-256-8828